According to the latest World Bank report, India stands at the 142th position in terms of ease of doing business globally. No wonder, there have always been clamour and concern for bureaucratic hurdles which prevent the business to run efficiently and smoothly. One such hurdle was the bureaucratic procedure as to the incorporation of a new company.

However, welcome step has been taken by the Narendra Modi government to make the procedure more simple and user-friendly by introducing an integrated e-form INC-29 for incorporating a company in India. ‘EASE OF DOING BUSINESS’.

With the introduction of the INC-29, the Ministry of Corporate Affairs (MCA) has begun to make good on its promise to improve India’s ranking on the World Bank’s Ease of Starting a Business Index to include in top 50 from the current rank which is 158.

The new concept of FAST TRACK INCORPORATION was given effect by the MCA in the form of the new form INC 29. The form INC 29 facilitates the incorporation of the company in a single form i.e. INC 29 as soon as this form is filed with the ROC the company will come into existence legally. The concept behind this new form is just to encourage the new entrepreneurs to enter into marker without any hindrance and not to face any problem while incorporating the company legally with the ROC. The introduction of this form has reduced the complexity which was present in the previous method of incorporating a new company and further reduces the cost when compared to the previous method.

The Ministry Corporate Affairs have an integrated company incorporation form to make compliance and reporting easier and convenient for Corporate from 1st May, 2015.

Particular

Integrated Incorporation Process

Normal Incorporation Process

Both the options are available with Companies for Incorporation.

Purposes

5-in-1 form

N. A.

No. of Forms required to File

1 (ONE)

5 (FIVE)

Steps of Incorporation

Single Step Incorporation

Three Steps Incorporation

Form Filing Requirement

Only one Form INC-29.

DIR-3- Application for DIN

INC-1 – Application for Name Approval

INC-7 – Incorporation of Company

DIR-12 – Appointment of First Directors

INC-22 – Situation of Registered Office

Digital Signature

Only One DSC required.

DSC of both Subscribers Required.

Incorporation of Section 8
Company

Section 8 Company can’t be incorporate by this process.

Section 8 Company can be incorporated by this process.

DIN Allotment

Maximum 3 Persons can apply for DIN through this process.

Separate DIR-3 is to be filed for each person.

Narrower Name Proposal

Person can give only ONE Name for Approval.

Person has option to give SIX Names in the order of preference.

Name Keeping

While applying name applicant has to undertake necessary diligence regarding the name keeping, considering the guidelines issued by MCA for Name approval.

Drawback: Be sure for the proposed name because you can give only one name and if this name is not available with MCA you have to apply again will changes in all the documents. This is major drawback of this process.

First DIN form will approve generally it takes 1 day. Second Name will Approve, generally it takes 7-10 days. Third Incorporation Approves, generally it takes 7- 10 days. So overall Incorporation of Company takes 20-25 days.

· Apply for DIN in form DIR 3: It is a STP form DIN is generated in e-form Challan.